DSG International is set to close 77 of its 177 Currys.digital shops over the next five years. This isn't just so DSG can have a round 100 stores, but is in fact an attempt to trim the company's costs by £50m.
John Browett, DSG's chief executive, said: "Customers have become increasingly promotion and deal driven, impacting gross margins." Damn you deal-finding consumers!
The announcement came as DSG reported a 1% rise in like-for-like sales for the year up to 3 May. Despite this, the company's shares took an 11% tumble at the news of the planned shop closures.
Earlier this year the company issued two profit warnings, blaming the credit crunch for a challenging trading environment.
On the plus side, existing Currys.digital, Currys and PC World stores will be getting a new lick of paint in the transformation process.